5. Draft Joint Sustainability Committee - Bond Recommendations — original pdf

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JOINT SUSTAINABILITY COMMITTEE RECOMMENDATION 20260225-XX Recommendation on Energy Conservation Programs in Texas Gas Service Franchise Agreement WHEREAS, the City of Austin has a 20-year franchise agreement with Texas Gas Service (TGS), which is the Company’s license to operate in the City’s right of way; and WHEREAS, Texas Gas Service (TGS) has been planning and operating Residential energy conservation incentive programs that do not pay for themselves in reduced fuel costs or reduced fuel consumption; and WHEREAS, some of these conservation programs appear to be aimed at marketing gas appliances rather than improving energy efficiency; and WHEREAS, Austin Energy already runs similar conservation programs for energy efficiency building improvements and serves most of the same customers as TGS; and WHEREAS, there is precedent for the City of Austin to operate a gas utility conservation program, which was done between 1987 and 1997; and WHEREAS, TGS is currently in violation of its franchise, which requires it to implement energy conservation programs as part of its normal operations; and NOW, THEREFORE BE IT RESOLVED THAT The Joint Sustainability Committee recommends that the City implement the following policies as part of the Texas Gas Service franchise agreement: ● Austin should take over planning and management of TGS conservation programs as part of the new franchise agreements, with charges for gas conservation programs paid by TGS. ● These funds should be collected with either an increased franchise fee specific to each rate class of customers or a bill rider similar to the Texas Gas Service’s Conservation Adjustment Charge or Austin Energy’s Community Benefits Charges. The funds from an increased franchise fee or bill rider can be allowed to change from year to year, with a not-to-exceed amount or percentage. ● All previously collected but unspent conservation funds and previously purchased equipment for implementation of the Texas Gas Service program should be transferred to the City of Austin for continued operation of the programs. Previously collected TGS conservation funds should be directed towards low-income home weatherization.